Options/HRL

HRLHormel Foods Corporation

Options Analysis Report•MEAT PACKING PLANTS

Market Cap $11.9B|NYSE

● 2026-08-31$21.57

NEUTRAL

Analysis: 2026-08-28 EOD data

1Y -13.8%YTD -7.8%7D -10.5%

Options Vol

10,636

30D

Implied Move

±6.9%

IV Rank

11%

HRL Options Overview

IV is low with unusual activity. Conditions favor option buyers.

REWARDS

RISK ANALYSIS

Snowflake Analysis

Favorable conditions for option buyers

Learn

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HRL Gamma Walls

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Value

Is IV priced right?

8.3

ExpensiveCheap

Measures whether options are cheap, fair, or rich relative to historical and peer

levels.

Risk Checks7/9 checks passed

IV Rank

≤35%

IV Rank 29.0% — cheap vs history

IV/HV Ratio

<1.05x

IV/HV 0.62x — IV ≤ HV

Sector Relative≤50%

Sector percentile 41% — below sector median

Term Structure

<1.1x

Front/Back 0.82x — contango

Skew Normal

<1.25x

Put/Call IV 1.16x — elevated

Absolute IV

<80%

ATM IV 25.1% — normal range

Spread-Adjusted Value

<80%

Effective IV 67.7% (ATM 25.1% + spread 21.3% + bias) — fair

Execution Efficiency

<3.0%

Total drag 31.07% (spread 21.32% + slippage 9.75%) — high friction

Vega Efficiency

≥5.0

Vega efficiency 0.79 (vega 1.677 / spread 21.32%) — spread drag

Sentiment

Bullish or bearish?

5.4

BearishBullish

Analyzes

put/call ratios

open interest skew

, and flow direction to determine market bias.

Risk ChecksBullish - Strong signal (Conviction: +29%, Raw: +24%)

Flow Direction

|net sentiment| ≥25%

Conviction-weighted: +29% (bullish) — Raw: +24%

OI Skew Magnitude

≥15%

|OI skew| 24.8% — call-heavy

Volume-OI Alignment

Same sign, |vol skew| ≥10%

Vol skew -26.1%, OI skew +24.8% — divergent (opposite)

Conviction Quality

≥2/3 conditions

0-DTE 0%, far-OTM 15%, avg DTE 30

OI Momentum

|change| ≥3%

OI change +0.0% (5d) — stable

Smart Money Flow

|weighted flow| ≥20%

ITM: +41%, ATM: +34%, OTM: +2% — strong bullish (ITM/ATM aligned)

Sector Relative≤40% or ≥60%

Sector P/C percentile 94% — very bearish vs sector

Activity

Unusual activity?

6.1

QuietActive

Detects volume surges,

block trades

, and unusual options activity that may signal moves.

Risk Checks4/8 checks passed

Volume Surge

≥1.5x

Volume 1.7x avg — elevated

Turnover Rate

≥15%

Vol/OI 9.8% — normal turnover

Multi-Day Persistence

≥2 days

3 day(s) elevated — sustained

OI Build

≥5%

OI change +46.9% (5d) — building

Sector Relative≥60%

Sector activity percentile 89% — very active vs sector

Trade Quality

≥30%

Large trade volume 14% — mostly retail

Execution Urgency

≥60%

Aggressive execution 35% — patient

Flow Conviction

≥30

Conviction +29 (bullish) — mixed

Liquidity

Can I trade efficiently?

3.9

IlliquidLiquid

Evaluates

bid-ask spreads

, volume depth, and open interest for trade execution quality.

Risk Checks3/8 checks passed

Tradeable Spread

≤5.0%

Spread 21.3% — wide

Adequate OI

≥10,000

OI 108,392 — deep

Active Volume

≥500

Volume 10,636/day — active

Reasonable Cost

≤$0.50

$1.07 to cross — expensive

Strike Coverage

≥5 strikes

0 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 46% — neutral vs sector

Order Book Depth

≥100 contracts

Depth 477.5 contracts (bid:289.0 ask:188.5) — adequate

Execution Quality

<1.0%

Avg slippage 9.75% — poor

Timing

Is now a good time?

7.2

RiskyFavorable

Considers earnings proximity,

time decay

, and event calendar for optimal entry timing.

Risk Checks8/9 checks passed

Term Structure Clarity

|slope| ≥5%

Slope -17.9% — contango

IV Percentile Clarity

<30 or >70

IV percentile 29% — buyer opportunity

Event Detection

≥10pts kink

IV kink -2.9pts — no clear event

Theta/Vega Clarity

<0.5 or >2.0

θ/ν ratio 129.04 — favors income trades

Expiration Distribution

≥3 expirations

4 liquid expirations — flexible

Event Risk

≥60% (safe)

safe window: No events detected

Spread Momentum

<1.2 ratio

Spread ratio 1.00x — stable

Flow Momentum

≥25% strength + ≥50% consistency

Flow +29% @ 64% consistency — moderate (bullish)

Smart Money Timing

≥40 composite score

Score 44 (ITM 20% + inst 14%) — moderate institutional

Directional Strategy Fit

Option Buyers

Long Calls6.4

bullishIV cheap, mixed flow

Long Puts6.1

bearishIV cheap, mixed flow

Premium Sellers

Cash-Secured Put4.3

bullishIV too cheap, mixed flow

Covered Call4.0

bearishIV too cheap, mixed flow

For educational purposes only. Not investment advice.

The Options Desk tracks the move options price into every US earnings report the week of Aug 31, next to how much each stock has actually moved on its past prints — plus the SPY, QQQ and IWM expected ranges and the gamma walls that box them in.

More on HRL

HRL gamma walls HRL max pain HRL IV rank HRL options flow